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Case Study

How a Travel Agent Survives
Ever-Dwindling Commissions

By

Paulette Thomas

Updated May 21, 2002 12:01 a.m. ET

THE PROBLEM: For travel agents such as Barbara Hansen, it has been death by a thousand cuts. For years, airlines have nicked away at the commissions they pay to travel agents, the lifeblood for most agencies. Then, in March, the worst case struck: Delta Air Lines eliminated commissions altogether, and its airline brethren quickly followed. Why pay agents when passengers can book flights themselves on the Web?

The move capped off one of the worst travel years ever. High fares, the Sept. 11 terrorist attacks and the prospect...